In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices
Zero-rated items include: exports of goods; international transport; services relating to maritime activities; supplies under diplomatic arrangements; supply of gold to the Central Bank of Albania; intermediary services related to zero-rated supplies or services rendered abroad.
A 6% reduced rate applies to: accommodation services by the accommodation facilities; supplies made within five-star accommodation structures of an internationally known trademark; supplies of accommodation and restaurant services, excluding beverages, by the certified structures; agritourism; supplies of advertising services by audio-visual media; licensed public transport equipped with electric motors, with nine plus one places or more; books; supply of construction work services for public investments in sports clubs/sports federations or for investments in sports infrastructure undertaken by private entities.
There is no tax regulation regarding donations to charities, fines and taxes paid; however, these are generally considered as non-deductible. Tax losses can be carried forward in full up to three years (five years for business projects valued above ALL 1 billion). The carryforward is not allowed if more than 50% of the direct or indirect ownership of the share capital or the voting rights were transferred during the fiscal year. The carryback of losses is not allowed. All costs that are not supported with fiscal invoices or expenses paid in cash of amounts exceeding ALL 150,000 are also considered non-deductible.
Social security contributions payable by the employer amount to 16.7% of salary (15% for social security, 1.7% for health insurance). For 2022, the gross salary base for calculating social security contributions ranges from ALL 32,000 to ALL 141,132.
Stamp duties are levied in the form of notary fees that apply to all transactions involving movable and immovable property (levied up to ALL 1,000). Notary fees vary between 0.23% and 0.35% of the transaction value for real estate and between 0.23% and 0.3% for movable property.
Property transfer taxes vary between ALL 100 and ALL 2,000 per square metre for commercial property and amount to 2% of the sale price for any other property.
The fee for the registration of a business entity is ALL 120 (waived if made online).
Albania | Eastern Europe & Central Asia | United States | Germany | |
---|---|---|---|---|
Number of Payments of Taxes per Year | 35.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 252.0 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 36.6 | 36.5 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
Income tax (Employment income) | Progressive rate |
1 January to 30 June 2022 | |
From ALL 0 to 30,000 | 0% |
From 30,001 to 150,000 | 13% (of the gross amount over ALL 30,000) |
Over ALL 150,001 | ALL 15,600 plus 23% of the amount above ALL 150,000 |
1 July to 31 December 2022 | |
ALL 0 to 40,000 | 0% |
From ALL 40,001 to 50,000 | 0% on income up to ALL 30,000; 6.5% on excess over ALL 30,000 |
Over ALL 50,000 | 0% on income up to ALL 30,000; 13% on income from ALL 30,001 - ALL 200,000; 23% on excess over ALL 200,000 |
Income other than from employment | 15% (8% for dividends) |
Type of property and law | Validity | International Agreements Signed |
---|---|---|
Patent Law N°7819 of 27 April 1994 |
20 years |
Patent Cooperation Treaty (PCT) |
Trademark Law n°7819 |
10 years, renewable once. |
Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks |
Design Law n°7819 |
5 years, renewable every 5 years for a total duration of 15 years. | |
Copyright Law n°7564 |
70 years after the death of the author. |
Berne convention For the Protection of Literary and Artistic Works Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty |
Industrial Models Law n°7819 |
10 years |
New Year | 1 January |
New Year | 2 January |
Nevruz festival (Spring festival) | 22 March |
Catholic Easter | 12 April |
Orthodox Easter | 19 April |
Labor Day | 1 May |
Fitër Bajrami (end of Ramadan) | Varies |
Beatification of Mother Teresa | 19 October |
Kurban Bajrami (Aid al-Adha) | Varies |
Independence Day | 28 November |
National Liberation Day | 30 November |
Christmas Day | 25 December |
Christmas period | Between 24 December and 3 January |
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Latest Update: September 2023